Australia’s share market finished the week with a sharp relief rally on Friday, December 12, 2025, as a surge in commodity prices (especially gold) and a rebound in heavyweight financials helped lift the major indices.
The S&P/ASX 200 closed up 1.19% at 8,694.10 , after trading in a tight band between 8,592.00 and 8,697.70 . [1]
The broader All Ordinaries ended 1.16% higher at 8,980.80 . [2]
What happened on the ASX today: a broad-based rebound led by Materials and Financials
By mid-afternoon, the market’s leadership was clear: Materials jumped to record levels and Financials bounced strongly after a difficult month, with investors rotating back into cyclical and value pockets of the market. [3]
MarketIndex flagged that at around 2:15pm AEDT:
- Materials were up about +1.71% (record highs)
- Financials were up about +1.54% (off seven‑month lows) [4]
It also noted a key broader takeaway for December positioning: Materials were the only sector still positive over the past month , while several other sectors had fallen more than 4% over the same period. [5]
Gold stole the spotlight — and it showed up in gold miner gains
One of the day’s biggest tailwinds was a strong move in bullion. ABC’s market blog reported gold surged roughly 2% overnight to near US$4,274/oz , giving local gold stocks an extra boost in the morning and into midday trade. [6]
At midday AEDT, ABC highlighted:
- Newmont up about 5.2%
- Northern Star up about 1.9%
- Evolution Mining up about 3.7% [7]
MarketIndex’s noon leaders list also emphasized how concentrated leadership was in Materials, with gold names heavily represented. [8]
Global cues: Wall Street records, an Oracle shock, and a “value rotation” vibe
Overnight market action in the US helped set the tone. MarketIndex’s morning wrap said the S&P 500, Dow and Russell 2000 hit fresh record closing highs , but tech was rattled after Oracle missed expectations , reinforcing a rotation into cyclical/value areas (a setup that typically supports banks and resources in Australia). [9]
Reuters’ Asia/global markets wrap added that the tech jitters were linked to Oracle’s sharp drop and concerns about the payback from heavy AI/data-centre spending, even as broader risk sentiment remained supported. [10]
This “records in the Dow, mixed in tech” pattern was also reflected in ABC’s afternoon snapshot, which referenced Wall Street’s strong Dow performance versus a softer Nasdaq. [11]
Winners and laggards: gold, uranium and banks up; shares of tech and retail down
By early afternoon, ABC’s live blog said the ASX 200 was about +1.2% around 8,692 points , with the day’s breadth positive overall, and singled out the extremes:
- Boss Energy leading the ASX 200 movers (about +7.2%)
- Metcash among the weakest (about −3.1%) [12]
MarketIndex’s intraday movers list offered a similar picture of mixed leadership beneath the index headline:
- Notable gainers included Sims, Genesis Minerals, Ventia, MA Financial
- Notable laggards included Austal, Megaport, Lovisa, Liontown, Neuren, Lynas and Technology One [13]
In other words, this wasn’t a “tech-led” day . The market action looked more like resources + banks doing the heavy lifting , while selected growth and consumer names trailed.
Major stock market news driving attention on 12.12.2025
Beyond the index move, several large, widely-followed stories shaped the day’s tape.
Tomago Aluminum: Rio Tinto power deal supports industrial outlook
One headline grabbing investor attention: Rio Tinto securing a subsidized power arrangement to keep the Tomago smelter open beyond 2028 , supported by government underwriting of longer-term power supply. MarketIndex noted Tomago’s scale — more than one‑third of Australia’s aluminum output and about 12% of NSW electricity demand — and that the deal is tied to broader renewable generation and transmission goals. [14]
ABC also reported Tomago Aluminum had previously flagged potential post‑2028 viability concerns because of electricity costs, with negotiations continuing and details expected to be finalized in the new year. [15]
Austal: Hanwha stake cleared, shares slide as governance questions loom
Austal was in focus after the federal government approved South Korea’s Hanwha to lift its stake in the shipbuilder, a decision framed by security sensitivities and conditions. [16]
ABC added that Austal said it would carefully assess the “opportunities and risks” of any potential partnership requests and board-seat discussions, including governance and security considerations. [17]
MarketIndex’s intraday movers list showed Austal among the notable laggards during the session. [18]
ANZ: ex-CEO lawsuit becomes a high-profile financials storyline
Financials weren’t just rising — they were also producing big headlines.
ABC reported former ANZ CEO Shayne Elliott is suing the bank over $13.5 million in bonuses , with ANZ saying it will defend the matter. The update also referenced the backdrop of regulatory penalties and accountability actions taken by the bank. [19]
Despite the headline, ABC noted ANZ shares were still higher on the day, though other big banks were outperforming (with CBA, NAB and Westpac showing stronger gains at that point in the session). [20]
Banks: why the sector is back in the driver’s seat
Alongside today’s price action, ABC cited Morningstar analysis suggesting Australian households are “in good shape” compared with pre-pandemic conditions, pointing to stronger offset balances and fewer high-LVR borrowers. The same analysis flagged expectations for mid‑single‑digit credit growth and a major bank net interest margin around 1.85% by 2027 . [21]
That kind of “macro‑to‑micro” narrative helps explain why financials can bounce hard when investors are in a rotation mindset: banks are liquid, index-heavy, and tightly linked to domestic growth and rates.
Commodities and the Aussie dollar: the macro backdrop ASX traders watched today
ABC’s afternoon market snapshot provided a quick look at the cross‑asset backdrop that traders were tracking alongside the ASX:
- AUD around 66.67 US cents
- Iron ore around US$106.15/ton
- Brent crude around US$61.70/barrel
- Spot gold around US$4.274/oz [22]
MarketIndex’s morning wrap also emphasized the scale of the overnight commodity move, calling it a “massive session” with gold higher and copper and silver pushing to fresh record highs — exactly the kind of backdrop that can turbocharge the Materials sector in Australia. [23]
Forecast and outlook: what today’s rally could mean next week
The early signal was right: futures pointed to a jump
Before the open, MarketIndex reported ASX 200 futures up 89 points (+1.03%) around 8:30am AEDT, foreshadowing the strong start that played out in cash trading. [24]
Technically, traders are watching whether this becomes a “real bottom”
MarketIndex described Friday as one of the stronger sessions seen in months and noted the technical ASX 200 was closing in on a key marker (the 50‑day moving average). [25]
Whether that turns into sustained upside will likely depend on whether:
- the commodities bid holds (gold/copper/iron ore), and
- the rotation away from crowded tech continues globally.
Macro watch: rates and risk sentiment remain the key swing factors
Reuters noted markets were responding to a dovish tone in rate expectations, with investors increasingly pricing in multiple cuts next year and the US dollar weakening accordingly. [26]
For Australia specifically, the “rates story” still matters because it shapes:
- bank margin expectations
- household spending/credit quality,
- and the valuation framework for growth stocks.
Bottom line: Australia’s stock market finished the week with renewed momentum
Friday, 12 December 2025 delivered exactly what local bulls wanted to see: a decisive, resources-and-banks-led rebound that lifted the ASX back toward a one-month high and set up a more constructive tone into the year-end window.
With the ASX 200 closing at 8,694.10 (+1.19%) and the All Ordinaries at 8,980.80 (+1.16%) , the key question heading into next week is whether this was a one-day squeeze — or the start of a broader “Santa rally” extension powered by commodities and cyclicals. [27]
References
1. www.investing.com, 2. www.investing.com, 3. www.marketindex.com.au, 4. www.marketindex.com.au, 5. www.marketindex.com.au, 6. www.abc.net.au, 7. www.abc.net.au, 8. www.marketindex.com.au, 9. www.marketindex.com.au, 10. www.reuters.com, 11. www.abc.net.au, 12. www.abc.net.au, 13. www.marketindex.com.au, 14. www.marketindex.com.au, 15. www.abc.net.au, 16. www.reuters.com, 17. www.abc.net.au, 18. www.marketindex.com.au, 19. www.abc.net.au, 20. www.abc.net.au, 21. www.abc.net.au, 22. www.abc.net.au, 23. www.marketindex.com.au, 24. www.marketindex.com.au, 25. www.marketindex.com.au, 26. www.reuters.com, 27. www.investing.com
